Investor Glossary-value fundInvestor Glossary-value fundInvestor Glossary-value fundInvestor Glossary-value fundInsightful stock market charts - Click here
investor
Categories    # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

Value Fund

The HTML to link to this page
 

A mutual fund that employs a value approach to investing is referred to as a value fund. A manager of a value fund will select stocks he/she believes are fundamentally undervalued for inclusion in the portfolio. Value fund managers typically screen for companies trading at a P/E discount to the overall market or companies in a turnaround mode. A value fund is more focused on safety than a growth fund so most value fund managers look for mature companies with ample cash flows that have an established track record of paying dividends. Value fund managers generally outperform growth fund managers during periods when the economy is weak. Because a value fund derives a portion of its returns from dividends and is not dependent exclusively on share price gains, a value fund tends to be less volatile than a growth fund.



Rate this value fund definition...

Learn about investing with the Investor Glossary Term of the Day


Click here for insightful stock market charts. Where is the market headed? The answer may surprise you. Find out
with the exclusive & Barron's recommended charts of Chart of the Day.


Popular Terms: reverse mortgage, current ratio, phantom income, APR, limit order, class C shares, labor relations, diluted share, covered put, dividends payable, debt service coverage, option premium, per diem, irrevocable trust, stock split, inflation, cancelled check, risk management, required rate of return, 1035 exchange, FICO score, 144a, minority interest, Key Rate Duration, average price per share, deferred revenue, liquidity ratio, command economy, annual return, LIBOR, quality assurance, VIX, ex-dividend, ex-dividend date, open position, in escrow, wholly-owned subsidiary, EBITDA, implied volatility, retained earnings, balance sheet, deferred tax, margin rate, 1031 exchange, Zero Cost Collar, FTSE, stock market close, 401a, real GDP


Investor Glossary | Term of the Day | Suggest a Term | Chart of the Day | Dogs of the Dow
Investor Glossary Index >>> # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
Accounting | Banking | Bonds | Brokers | Economy | Futures | Mutual Funds | Options | Real Estate | Retirement | Stocks | Taxes | Technical Analysis
©2004-2014 Investor Glossary - All rights reserved - Terms of Use